AAON Inc (AAON)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 227,494 | 210,208 | 182,244 | 147,957 | 126,761 | 85,606 | 69,043 | 73,802 | 69,253 | 89,528 | 95,522 | 92,502 | 101,836 | 99,344 | 88,243 | 83,337 | 67,011 | 60,911 | 66,042 | 63,268 |
| Long-term debt | US$ in thousands | — | 78,420 | 78,536 | 83,664 | 71,004 | 76,291 | 106,249 | 65,000 | 40,000 | 6,394 | 6,383 | 6,373 | 6,363 | 6,351 | 6,340 | 6,330 | 6,320 | — | — | — |
| Total stockholders’ equity | US$ in thousands | 735,224 | 682,484 | 660,111 | 609,414 | 560,714 | 523,858 | 490,506 | 480,156 | 466,170 | 400,279 | 383,726 | 373,038 | 350,865 | 344,892 | 322,695 | 306,323 | 290,140 | 279,567 | 264,569 | 259,370 |
| Return on total capital | 30.94% | 27.63% | 24.67% | 21.35% | 20.07% | 14.26% | 11.57% | 13.54% | 13.68% | 22.01% | 24.49% | 24.38% | 28.51% | 28.28% | 26.82% | 26.65% | 22.60% | 21.79% | 24.96% | 24.39% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $227,494K ÷ ($—K + $735,224K)
= 30.94%
AAON Inc.'s return on total capital has shown a generally positive trend over the past eight quarters, indicating improving efficiency in generating returns from its total capital employed. The return on total capital has consistently increased from 13.59% in Q1 2022 to 28.95% in Q4 2023, showcasing a strong upward trajectory.
This improvement suggests that AAON Inc. has been effectively utilizing its capital resources to generate profits and create value for its shareholders. The trend indicates a positive operational performance and financial management, potentially leading to enhanced shareholder wealth and overall company stability.
Overall, the consistent growth in return on total capital reflects positively on AAON Inc.'s financial health and operational efficiency, positioning the company well for sustainable growth and profitability in the future.
Peer comparison
Dec 31, 2023